Transition Therapeutics to Receive up to $30.8 Million
Transition Therapeutics Inc. recently announced that Jack W. Schuler , Larry N. Feinberg, Oracle Investment Management, certain Transition Board members, management, and other existing shareholders will make an investment of up to $30.8 million by purchasing 3,195,487 units of the company at a price of $5.32 per unit.
Each unit consists of one common share, and 0.61 of a common share purchase warrant with a purchase price of $7.10 per whole warrant. Each whole warrant will entitle the holder, within 2 years from closing, to purchase one additional common share in the capital of the company. If and when all of the warrants are exercised, the company will realize an additional $13.8 million, bringing the total investment to $30.8 million before transaction costs. Closing of the private placement is expected to occur on or about June 20, 2014, and is subject to approval from the Toronto Stock Exchange.
“With this offering, Transition has sufficient funding to complete its Phase II clinical study of drug candidate ELND005 in agitation and aggression associated with Alzheimer’s disease and the Phase II clinical study of drug candidate TT-401 (LY2944876) in type 2 diabetes. Building on these core development programs, this offering will enable the company to expand its pipeline of drug candidates in-licensed through partnerships with pharmaceutical companies. I am very pleased with the on-going commitment and support of our large investors, Board, and management that contributed to the financing of the offering,” said Dr. Tony Cruz , Chairman and Chief Executive Officer of Transition.
Transition is a biopharmaceutical company, developing novel therapeutics for disease indications with large markets. The company’s lead CNS drug candidate is ELND005 for the treatment of Alzheimer’s disease and Down syndrome. Transition’s lead metabolic drug candidate is TT-401 (LY2944876) for the treatment of type 2 diabetes and accompanying obesity. For more information, visit www.transitiontherapeutics.com.
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